Secured loans could aid students who feel "let down"
30/01/2008Students have a right to feel "let down" over recent suggestions that their default data could be passed on to credit reference agencies, one expert has suggested.
Paul Holmes, chief executive officer for Firstrung, a company which specialises in providing support to students and first-time buyers, said recent reports from mortgage company mform.co.uk suggest it could soon be difficult for those with loan defaults to get on to the property ladder.
However, he added that students who miss payments on their loans - which can be eased with debt consolidation or a secured loan - should be confident that they will not be penalised by having their data passed to credit agencies.
"I'm really suspicious as to how the government and the agency that controls student debt is going to be able to pass it on to Experian to manage, given that they're not lenders," he said.
Consumers struggling with credit card repayments and student debt may find that a secured loan or debt consolidation could help - as often they offer a more competitive interest rate than traditional personal loans.
 © Adfero Ltd
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